I buy a property through the HDT and i get the loan in my name Correct so far!

and loan the money to the trust No. You use the proceeds of the loan to acquire units in the HDT. The Trustee of the HDT uses the subscription proceeds it receives from you for issuing the units to buy the property who in turn buys the property this i understand.

But what if my wife and I both work. What if we both wanted to buy property. Is it possible to have her get a loan in her name and then loan to trust etc. Yes.

Any ideas how we can purchase more property quicker and also reduce both of our taxable incomes? If you buy newer properties they will have better depreciation. This is a non-cash deduction which will reduce your taxable income without taking cash out of your pocket. But in any event the more debt you have the more interest deductions you'll have...and if the properties are negatively geared bingo a lower taxable income...

BUT tax considerations should be the icing on the cake...don't buy a property just because you reckon it will give you good tax deductions. Only buy if the price is right, the yield is acceptable and the property has good growth prospects. And most importantly, don't overstretch yourself...you won't be buying anything if you get yourselves into financial difficulties...

thanks for any help!

Click to expand...

Good luck with it!
Cheers
N.

Nigel

This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

Triu,
Sounds like you could benefit from reading the January and February issues of Australian Property investor magazine. Dale GG does an article on HDTs in both. I have an article on crunching the numbers to work out how the property is going to effect you tax wise in January's edition and in February I take that one step further to see how much it must go up in value to recover the accumulated loss of negative gearing.